EUROPEAN MARKET SUMMARY 22/1/2015 European markets are seen opening largely unaffected on today as investors wait for a stimulus program from the European Central Bank. The markets rallied harshly over the last 5-days on hope that the ECB will launch a large-scale program to buy government bonds when its governing council meets later in the day. There are expectations that the central bank will propose to buy generally 50 billion euro’s a month in bonds for at least a year to improve growth and keep away from the risk of a persistent and persistent decline in prices. The markets may turn volatile later in the day as investors had already factored the forecast of the asset purchase program. Also, with Ukraine’s president accusing Russia of moving extra troops and military hardware into his country and polls pointing to a secure victory for Greece’s Syriza party in Sunday’s general election, investors are likely to take on a cautious stance heading into the ECB meeting. The euro held stable in Asian deals as investors braced for ECB moves. In the meantime, following moves in Switzerland, Denmark and Turkey, Canada’s central bank surprisingly cut its benchmark rate by 25 basis points late Wednesday to counter the effects of cheaper oil and its force on economic growth. In economic release, Spain’s unemployment rate remained largely unchanged at a three year low in the fourth quarter, the statistical office INE said today. The jobless rate came in at 23.7 percent in the fourth quarter, slightly up from 23.67 % in the third quarter. The rate was forecast to fall to 23.53 %. In the fourth quarter of 2013, the rate was at 25.73 %. The unemployment rate in the third quarter was the lowest since the fourth quarter of 2011, when it was at 22.56 %. In the fourth quarter, employment in industry increased by 11,700 and by 62,800 in agriculture. Job creation in the construction sector was up 7,800, while it fell 17,200 in services. Employment increased by 65,100 sequentially in the fourth quarter to 17.57 million. It was the first increase in the fourth quarter since 2006. The FTSE 100 is higher by 0.22%, while the CAC 40 is leading the DAX lower. They are down 0.14% and 0.04% respectively.
Posted on: Thu, 22 Jan 2015 09:34:27 +0000
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